According to the Tropical Timber Market Report (ITTO), news from Cameroon suggests most mills are back to work but that the stock of logs is declining with only old logs remaining.
The concession application/renewal process is still ongoing so log stocks cannot be replenished. Analysts anticipate it will be another month until mills know whether or not they have a concession agreement. Some of the companies in Cameroon and Gabon are working to cut carbon emission and cut the carbon footprint in their operations by utilising more efficient methods, better logging equipment and trucks.
This initiative has reportedly got the backing of the World Bank. Prices for sawn padouk, sapelli and iroko have moved higher. Demand for padouk has firmed in India and in Belgium and the up-tick in iroko prices is on the back of demand in the Middle East where importers are short of Myanmar teak and see iroko as an alternative for some end-uses. Producers report other markets as very quiet. Europe and North America are still experiencing winter weather and major disruption from Covid-19. Business in China has slowed as companies in the country prepare for the long Chinese New Year holidays.
This article was first published by the Tropical Timber Market Report.